Pepe Coin (PEPE), the third-largest meme cryptocurrency, has experienced a significant downturn recently, losing momentum over the past two weeks. After peaking at $0.00002828 in December, the coin has faced a 65% drop, stabilizing around the key support level of $0.000010. This decline has caused a loss of nearly $6 billion in its market capitalization, which has dropped from $10 billion to $4.1 billion. This trend mirrors the broader meme coin market, which has been hit hard over the past couple of months.
Investor sentiment appears to have shifted as evidenced by a notable decrease in futures open interest. From over $556 million in January, open interest has now fallen to $258 million, indicating a decline in investor activity and interest. Despite this, there are signs of resilience among Pepe holders, with the number of holders increasing from 384,000 to 404,100 in the past month. This growth in holders suggests that many investors are holding firm, waiting for a potential rebound.
On the technical front, Pepe’s price chart reveals mixed signals. The coin has recently formed a "death cross," where the 50-day and 200-day weighted moving averages crossed, signaling potential bearish trends. Furthermore, the price has slipped below the 61.8% Fibonacci Retracement level of $0.000011, reinforcing the bearish outlook. The ongoing consolidation suggests that Pepe could face further downside, potentially dipping to $0.0000058, the lowest point from August of the previous year.
However, there is also room for a positive turn. Pepe has formed a falling wedge pattern, which often precedes a bullish breakout. If this pattern materializes, there is potential for a significant rebound, pushing Pepe's price back toward $0.000025, marking a 150% increase from its current level. Therefore, while the immediate outlook remains cautious, the possibility of a recovery and upward momentum still exists for Pepe Coin.
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